Cable laying vessels are ships specially designed and equipped to install or repair submarine communications cables. Their primary roles are cable laying, burial, repair, maintenance, and replacement through water depths up to 3,000 meters. With increasing focus on offshore renewable energy projects and digital connectivity across remote areas worldwide, demand for high-speed internet connectivity through undersea cables has increased significantly. This has driven the need for specialized cable laying vessels that can transport and position cable reels of up to 6,000 tons while routing cables through rugged ocean beds and depths. The global Cable Laying Vessel Market is estimated to be valued at US$ 2.7 billion in 2023 and is expected to exhibit a CAGR of 22% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Rising undersea cable installation projects present a major growth opportunity for the cable laying vessel market. Investment in new undersea cable projects is increasing significantly to support growing data demand and improve telecom infrastructure globally. For instance, according to TeleGeography’s 2021 Submarine Cable Map, over 420,000 km of new submarine cable projects worth $9 billion were planned for 2021-2023 to interconnect countries worldwide and boost connectivity. Furthermore, projects such as 2Africa, the longest subsea cable system ever built stretching over 45,000 km across Africa, the Middle East, and Asia, are expected to drive demand for specialized cable laying vessels during installation. Rising demand for high-speed connectivity globally will continue to drive new undersea cable projects, thereby providing growth opportunities for cable laying vessel manufacturers and shipbuilders over the forecast period.
Porter's Analysis
Threat of new entrants: The cable laying vessel market requires high capital investments which pose significant barriers for new entrants. Bargaining power of buyers: The bargaining power of buyers is moderate as buyers have limited options for specialized cable laying vessels. Bargaining power of suppliers: Suppliers have moderate bargaining power due to presence of several component suppliers and availability of substitute components. Threat of new substitutes: Threat of new substitutes is low as cable laying vessels have no close substitutes for underwater cabling projects. Competitive rivalry: The competitive rivalry is high among existing players due to their focus on innovation and customized solutions.
SWOT Analysis
Strength: Cable laying vessels allow efficient installation of cables in deep waters. They offer heavy lifting capabilities and ability to install cables in any terrain or weather. Weakness: High maintenance and operating costs of cable laying vessels pose financial challenges. Crew training requires substantial investment and time. Opportunity: Growing offshore wind farm installations and rising telecom network infrastructure spending drive demand. Expanding 5G networks worldwide present new opportunities. Threats: Economic downturns and decline in investments in undersea cable projects impact market revenues. Stringent maritime regulations increase compliance costs.
Key Takeaways
The Global Cable Laying Vessel Market Share is expected to witness high growth.
Regional analysis: The Asia Pacific cable laying vessel market is projected to grow at the fastest rate during the forecast period. This is attributed to ongoing and planned offshore wind projects across China, South Korea, Japan and Taiwan. China has emerged as the leading market in the region and is expected to witness significant installations of offshore wind capacity over the next decade.
Key players: Key players operating in the cable laying vessel market are Fugro, Royal Boskalis Westminster, Van Oord, Subsea 7, and Decom. Fugro and Royal Boskalis are industry leaders, based on their large fleet sizes and global installations.
Get More Insights Here
https://www.trendingwebwire.com/cable-laying-vessel-market-size-share-growth-outlook-2023/
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